Question 1

How do I calculate my freelance hourly rate?

Accepted Answer

Add your target take-home income to your annual business expenses to get the revenue you need. Divide that by your realistic billable hours for the year (hours per week × working weeks). The result is your minimum hourly rate — the floor you should never quote below.

Question 2

Why are my billable hours lower than my working hours?

Accepted Answer

Not every hour is billable. Admin, sales, marketing, and breaks aren't paid by clients, so most freelancers bill 20–30 hours of a 40-hour week. Using your real billable hours — not total hours — keeps your rate honest.

Question 3

Should I add a profit margin on top of this rate?

Accepted Answer

Yes. This calculator gives your break-even floor — the rate that covers your income goal and costs. Add a profit margin (often 20%+) on top so your business can absorb scope creep, slow months, and reinvestment.

Question 4

How is an agency rate different from a freelance rate?

Accepted Answer

Agencies layer team costs, overhead, and a target profit margin on top of the base labor rate, and often price by project or value rather than the hour. The same floor logic applies — you just have more costs to cover before profit.

Freelance Rate Calculator

From hourly rate to a profitable quote

Common questions about setting your rate

Never undercharge again

Freelance Rate Calculator

From hourly rate to a profitable quote

Common questions about setting your rate

How do I calculate my freelance hourly rate?+−

Why are my billable hours lower than my working hours?+−

Should I add a profit margin on top of this rate?+−

How is an agency rate different from a freelance rate?+−

Never undercharge again